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Who pays HOA dues when a condo is foreclosed on?

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kdestef1

Junior Member
A neighbor in our Condo complex is having to potentially foreclose on her condo because of some new law established with the mortgage industry not allowing owners to sell their condo's if 51% or more of the units are NOT owner occupied. Therefore, giving her no other option but to foreclose (she can't and doesn't want to rent it because she lives out of state; and besides we'd all be in the same boat if one of us wanted to sell (there are only 4 units)). My question is who pays the HOA dues if a condo is foreclosed on? If it is bank owned, wouldn't the bank be responsible for paying the HOA dues? Could our association potentially put a lien on the property after the foreclosure making whoever eventually buys it responsible for paying outstanding HOA dues? Please help, we're having a meeting regarding this and don't know how to address this. Thanks!
 


HomeGuru

Senior Member
A neighbor in our Condo complex is having to potentially foreclose on her condo because of some new law established with the mortgage industry not allowing owners to sell their condo's if 51% or more of the units are NOT owner occupied. Therefore, giving her no other option but to foreclose (she can't and doesn't want to rent it because she lives out of state; and besides we'd all be in the same boat if one of us wanted to sell (there are only 4 units)). My question is who pays the HOA dues if a condo is foreclosed on? If it is bank owned, wouldn't the bank be responsible for paying the HOA dues? Could our association potentially put a lien on the property after the foreclosure making whoever eventually buys it responsible for paying outstanding HOA dues? Please help, we're having a meeting regarding this and don't know how to address this. Thanks!
**A: please follow posting instructions.
 

joe in calif

Junior Member
Here in California once the bank takes over the property they are responsible for the dues, You can lien the property but would only get money if there is equity in it. The other thing you can do is hire a collection agency to go after the owner.
 

FlyingRon

Senior Member
The arrearage at the time of the foreclosure will most likely be wiped out. Whoever gets the property at foreclosure (typically the bank) will be responsible for the fees accrued from that point. You can lien the property again if the bank doesn't pay. Your lien at that point will probably be senior to everything (except unpaid taxes).
 

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